# PNB Business Loan EMI Calculator India Jan 2022

## Business Loan EMI Calculator PNB

Last Updated 12th Jan 2022

Get monthly EMI as low as ₹ 2,257 per lakh on PNB business loan. Business loan EMI in PNB depends upon loan annual turnover, gross receipts, number of years of ITR, loan amount, loan tenure and interest rate.

Loan Amount1 Year Loan2 Year loan5 Year loan
₹ 1 Lakh₹ 8,915₹ 4,738₹ 2,257
₹ 5 Lakh₹ 44,577₹ 23,689₹ 11,287
₹ 10 Lakh₹ 89,153₹ 47,378₹ 22,574
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• Business loan EMI (or equated monthly installment) is a fixed amount of money paid by you to PNB against the loan taken. This is towards repayment of your loan to the bank. Every month, it is due on a fixed day of the month till your loan is fully paid back.
• PNB offers business loans with loan tenure up to 60 months that translates into a lowest loan EMI of ₹ 2,257 per lakh, which makes it affordable for business loan borrowers. Lowest Rate of interest offered by PNB on business loan is 12.65%.

### Use EMI Calculator to Calculate your EMI on Business Loan at Different Tenure

Business loan EMI for ₹ 10 Lakh loan amount at lowest 12.65% interest rate offered by PNB for different tenures

1 year 2 year 5 year
PNB EMI for loan amount of ₹ 10 Lakh at 12.65% ₹ 89,153 ₹ 47,378 ₹ 22,574
Total amount you pay back to the bank including principal and interest ₹ 11,32,628 ₹ 12,82,847 ₹ 18,63,962
Interest you have to pay over loan tenure ₹ 1,32,628 ₹ 2,82,847 ₹ 8,63,962
• The above table shows the longer your loan tenure, lower is the EMI you pay on the loan. However, your total interest outgo is significantly higher in a long tenure loan. In the above example, if you take ₹ 10 Lakh loan for a period of 5 years, you pay the lowest EMI of ₹ 22,574. However, you pay an interest of ₹ 8,63,962 on a ₹ 10 Lakh loan.
• In contrast, if you take a ₹ 10 Lakh loan from PNB at the lowest loan rate offered for a period of 1 year, you pay a higher loan EMI of ₹ 89,153 and pay an interest of only ₹ 1,32,628 which is less than half of what you paid in a 5 year loan. Hence, it is advisable to choose your loan tenure wisely as longer tenure means high interest expenses.

### Factors affecting PNB Business Loan EMI

• Loan amount - This is the amount borrower promises to repay to the bank with the interest applied. PNB gives minimum business loan of ₹ 50,000 up to an amount of ₹ 15,00,000.
• Interest rate - Interest rate is the rate charged over the principal amount borrowed. Higher interest rate increases your loan EMI which will increase the total cost of the loan. Lowest interest rate offered by PNB is 12.65%. Do complete market research and compare rates online before you apply for a business loan.
• Loan tenure - This is the period in which you can repay your business loan to the bank. Longer loan tenure means lower loan EMI. Generally, PNB offers business loan for a maximum tenure of 48 months.

## PNB Business Loan Amortization Calculator

PNB Business Loan amortization schedule gives a break up of your monthly EMI into interest and principal repayment. PNB gives you a detailed amortisation schedule with the sanction letter and you can calculate the total interest outgo as well as the pace at which your loan amount will be repaid during the loan tenure.

How to read an amortization schedule

Suppose if you take a Business Loan of ₹ 8 Lakh for 4 years from PNB at an interest rate of 12.65%. EMI calculated for this loan amount is ₹ 21,323 and the total annual EMIs to be paid annually is ₹ 2,55,879. The EMI schedule of loan for 4 years is explained below in the table –

### Amortization Schedule for a Business Loan of ₹ 8 Lakh over the 4 years

Year Interest paid during the year Principal repaid during the year Total amount paid during the year (Interest + Principal) Outstanding Principal
2022 ₹ 91,909 ₹ 1,63,970 ₹ 2,55,879 ₹ 6,36,030
2023 ₹ 69,921 ₹ 1,85,959 ₹ 2,55,879 ₹ 4,50,071
2024 ₹ 44,984 ₹ 2,10,895 ₹ 2,55,879 ₹ 2,39,176
2025 ₹ 16,704 ₹ 2,39,176 ₹ 2,55,879 ₹ 0

In the above illustration, on a PNB Business Loan of₹ 8 Lakh, taken at the lowest interest rate of 12.65, EMI paid is ₹ 21,323 and an annual total of EMIs is ₹ 2,55,879, the interest component is ₹ 91,909 while the principal component is ₹ 1,63,970 in year 1 of loan disbursement. You repay only 20.5% of the total principal after paying 12 EMIs during the first year.

### PNB Business Loan Calculator Formula

P*r* (1+r)^n/([(1+r)^n]-1)
Here is an illustration of how PNB business loan EMI is calculated:
In above formula,
P = Loan amount. This can range from ₹ 50,000 to ₹ 15,00,000
r = Rate of interest per month. Current rate is 12.65%
n = tenure in month. For PNB, this can be 48 months

#### Tips to decide the right amount of PNB Business Loan EMI

• Ascertain the amount you need to borrow: It is important that before approaching PNB for business loan, you need to estimate the amount of loan you need to borrow. Remember business loan is an unsecured short term loan, and hence it is advisable to minimize your loan amount to the extent possible. Also, based on the EMI you can service, try to opt for lowest tenure of loans as long tenure loans result in huge interest outgo.
• Review your current obligations: Before taking loan from PNB, it is advisable to do an evaluation of your current monthly expenses including any EMI obligations that you have on your current loans. The assessment will help you to estimate the amount of EMI you can pay comfortably after taking into account other obligations. Once you arrive at the EMI you can service, you can also decide on the right loan tenure.

#### ✅What is the calculation of PNB Business Loan EMI?

Business Loan EMI (or equated monthly installment) is a fixed amount of money paid by you to PNB against the loan taken. This is towards repayment of your loan to the bank. Every month, it is due on a fixed day of the month till your loan is fully paid back.

• Business Loan EMI (or equated monthly installment) is a fixed amount of money paid by you to PNB against the loan taken. This is towards repayment of your loan to the bank. Every month, it is due on a fixed day of the month till your loan is fully paid back.
• With PNB offering business loan with loan tenure up to 60 months, the loan EMI can be as low as ₹ 2,257 per lakh, to make it more affordable and convenient to meet your business needs. Rate of interest offered by PNB are as low as 12.65%. You can check EMI for other tenures using our PNB business loan calculator.
• This EMI consists of both interest payment and principal repayment. Though the EMI amount will remain constant, the principal component keeps increasing and on the other hand the interest component keeps reducing.

#### ✅How does MyLoanCare business loan calculator calculate EMI?

This calculator calculates EMI considering a combination of loan amount, interest rate and loan tenure.

• This calculator considers “reducing balance basis” and assumes that payment of EMI is made in arrears (means interest is charged for the month preceding the EMI payment date) and not in advance.

#### ✅Will the PNB business loan EMI remain constant or change in future? What happens in case of increase or decrease in interest rate?

Typically, the business loan EMI remains unchanged unless the customer requests for a change and the same is approved by PNB subject to its eligibility conditions (note that nominal charges may apply for effecting a customer initiated change in EMI).

• In case the floating rate of interest on your business loan increases, PNB will typically keep the EMI constant but increase the loan tenure. So, you will pay the same EMI but for a longer duration. In case the interest rates increase to an extent that the revised loan tenure is more than the maximum permissible by PNB, the bank may increase your EMI amount.
• For partly disbursed loans availed under tranche EMI scheme, your loan EMI will increase with each disbursement.

#### ✅Will business loan EMI change in case of prepayment?

PNB allows prepayment at nil charges or penalty in case of floating rate business loans.

• When you make a prepayment, the outstanding principal amount on your loan reduces. In this case, you may choose to either keep the EMI same and reduce the loan tenure (that is paying off the loan faster) or reduce the EMI and keep the loan tenure same (that is paying lesser amount every month). It is beneficial to keep the EMI constant and reduce the loan tenure as you pay less interest to the bank in this option.

#### ✅Why should I calculate PNB loan EMI before taking a loan?

In case EMI comes out to be more than your monthly budget, then you have the chance to apply for a lower loan amount which fits your monthly budget and makes EMI easily affordable.

• If you already know the EMI you have to pay each month, then you can plan your expenses accordingly.
• Based on the EMI amount, you can opt for making prepayment of your business loan in future when you have surplus amount.

#### Compare Business Loan EMI of All Banks

PNB Business Loan Customer Care Toll Free Number
City Customer Care Number
Agra 011-23318130
Ambala 011-23318130
Anand 011-23318130

PNB Business Loan Reviews 3.8/5  by 2 customers
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PNB Business Loan News - Jan 2022
• 2021-12-27 : PNB Enters into a Co-lending Arrangement with Lendingkart
Punjab National Bank (PNB) has entered into a co-lending arrangement with Lendingkart to offer MSME digital underwriting and cash flow-based lending.
• 2021-12-06 : Punjab Bank Introduces New App for Disabled
PNB has launched a new Andriod-based App, PNB Pride- CRMD Module Tool, to help differently-abled employees. The app will aid Special Mention Account Borrowers for banking services.
• 2021-10-28 : Punjab National Bank Profit Jumps To 78 percent
Punjab National Bank (PNB) has posted a profit of 78 percent in net profit at Rs 1,105 crore for the second quarter ended September 30, 2021. Last year, the lender posted a net profit of Rs 620.81 crore during the corresponding quarter a year ago.
• 2021-07-15 : OBC & UBI merged with PNB
After the merger of OBC and UBI with PNB in April 2020, PNB has now updated the IFSC codes of all the branches of PNB and UBI. New IFSC codes have come into effect from July 1, 2021.
• 2021-06-30 : PNB to restructure loans worth Rs 6000 crores
Under restructuring 1.0, Public sector lender Punjab National Bank (PNB) received requests for restructuring Rs 11,000 crore in corporate, retail, and MSME loans. Under the Reserve Bank of India (RBIs) restructuring 2.0 window, PNB expects to restructure loans worth Rs 5,000-Rs 6,000 crores as the impact of the second wave of the Covid-19 pandemic fades.
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